Developer gets 30-month sentence for embezzlement

TAMPA - U.S. District Judge Elizabeth Kovachevich sentenced Clark East of Sugarland, Texas, to 30 months in federal prison for embezzlement from a bankruptcy estate.

According to the plea agreement, East, 59, obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza, Clearwater. He subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012.

The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the U.S. Bankruptcy Court through his company, 3700 Ulmerton Road LLC. During bankruptcy proceedings, East was ordered to sell the property and remit $1.2 million in sales proceeds to Stearns Bank. Instead of repaying the bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank, according to a press release from the U.S. Attorney's Office for the Middle District of Florida. East pleaded guilty to the charges April 3.